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This lesson is a part of the course Sampling and Estimation
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Stratified random sampling is a sampling method that goes one step further than simple random sampling. It can be used in situations where the population can be separated naturally into sub-groups or strata. For example, our population of 500 stocks can be separated into sub-groups, with each group representing an industry such as Energy, Automobiles, FMCG, Retail, Infrastructure, etc. Then from each stratum, we can take a random sample. The sample size taken from each stratum will depend on the size of the stratum itself with respect to the population.
